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James Skelley | Technology Lawyer
SESSIONS
Sessions are online meetups for discussing recent legal news, general education, and sharing various of James' research. The next scheduled session is:


You can find a complete listing of upcoming sessions and request to join HERE.
(Informal 1-2 line summaries, which certainly should not be relied upon for legal or other research purposes)
RECENT CASE HIGHLIGHTS
    • In this precedential license agreement damages decision (arising from the Court of Federal Claims), CAFC affirms "the trial court’s decision to assess damages via a hypothetical negotiation" since "the law does not compel deferring to the terms set out in a license agreement to assess copyright infringement damages." However, "because the trial court adopted a legally impermissible view of the book of wisdom and erred by assessing non-compensatory damages against the government" CAFC vacates and remands for further proceedings.
      "In February 2014, 4DD became aware the government had exceeded the terms of its license and notified SMS. In August 2014, 4DD directly contacted the government to discuss the excess copies and requested payment for what it estimated to be 68 additional Federator cores . . . The trial court rejected 4DD’s argument that the evidence proved an established royalty rate and instead used a hypothetical negotiation to fix a reasonable royalty. After establishing the hypothetical negotiation date as August 27, 2013, the trial court considered the relevant Georgia-Pacific factors and found that the government would have possessed the superior bargaining position in this hypothetical negotiation . . . It determined that 4DD’s bargaining position was weakened given that (1) TETRA provided the government with little value, (2) TETRA had no established profitability, and (3) there existed a similar and cheaper software, Rhapsody . . . 4DD contends, the trial court committed legal error when it estimated royalty rates for the TETRA software using a hypothetical negotiation framework rather than simply adopting the established and previously agreed upon License or SEWP rates . . . Neither statute nor case law requires automatic adoption of royalty rates set out in licensing agreements when calculating infringement damages . . . Thus, the relevance of licensing agreements varies with the degree to which those agreements parallel the infringing activity . . . while a license may inform the reasonable royalty inquiry, no rule of law compels courts to defer to such an agreement in lieu of conducting a hypothetical negotiation, particularly where material differences exist between the terms of the license and the defendant’s infringement." (emphasis added)
      This, while CAFC agrees with the DCT that its analysis isn't confined to the agreement rates, it disagrees that the DCT's subsequent "book of wisdom" analysis was appropriate.
      "4DD contends that the trial court adopted an overexpansive view of the book of wisdom. . That is, the trial court constructed the hypothetical negotiation with the knowledge that the government would later cancel its work with TETRA before it could be successfully implemented. 4DD suggests this amounts to legal error . . . this so-called book of wisdom allows courts to consider later-occurring events when appraising the value of a patent or copyright at an earlier point in time"
      The "book of wisdom" phrase / analysis comes from Sinclair Refin. Co. v. Jenkins Petroleum Process Co., 289 U.S. 689, 698 (1933):
      "Here is a book of wisdom that courts may not neglect. We find no rule of law that sets a clasp upon its pages, and forbids us to look within."
      Basically, in this case, CAFC is clarifying that the BoW, while permissive, does have limits:
      "The purpose of the book of wisdom is to provide insight and reduce uncertainty as to the elements of a license the parties are hypothetically negotiating . . . It may not, therefore, be used to impute knowledge of later-occurring events affecting the value of the license that were unforeseeable at the time of negotiating, such as the government’s change in leadership and resulting decision to end its work with TETRA before implementation . . . Because we cannot separate the court’s error in applying the book of wisdom from its assessment of the parties’ respective bargaining positions, which has implications for the outcome of the hypothetical negotiation, we must vacate and remand for further proceedings." (emphasis added)
      Ergo, after addressing a few more of the plaintiff's challenges, and some guidance for a proper BoW analysis, CAFC affirms as regards the extra-contractual royalty analysis, but vacates and remands as to the BoW analysis.
    • In this precedential decision, CAFC reverses a preliminary injunction grant, basically because 1) questions in the claims mitigated arguments of a likelihood of success on the merits for infringement; and 2) the assertions of "irreparable harm in the absence of injunctive relief [were] speculative at best."

      Regarding the likelihood of success:
      "We conclude . . . that the KNL defendants have, at a minimum, shown that there is a substantial question regarding whether the accused door can satisfy a claim limitation requiring a panel that is “flexible along [its] entire length” . . . We see nothing in the specification or prosecution history suggesting that the claim language does not mean what it says when it requires a “second outermost surface” which is “form[ed]” from “foam insulating material . . . during prosecution Cold Chain . . . stated that “[t]he sandwich structures of Rauenbusch are not the same as [the] claimed structure” because “the Rauenbusch sandwich structures do not include a foam insulating material forming the second outermost surface of the door.” We likewise conclude that there is a substantial question regarding whether the accused door is an “insulated overhead door” . . . as that term is used in claim 1."
      Regarding irreparable harm:
      "[W]hile Ridge alleged that it had been forced to sell its doors at reduced prices because of the alleged infringement by the KNL defendants, it failed to show that there was any causal nexus between sales of the accused doors and the prices Ridge set for its own doors . . . . We conclude, moreover, that the district court erred in determining that injunctive relief was merited based upon the Ridge plaintiffs’ assertions that: (1) TTPS incorrectly stated that the accused door was patented when it instead was the subject of a pending patent application; and (2) Kirk interfered with Ridge’s business relationships by sending a letter to Whiting Door threatening royalty damages."
      Ergo, reversed and remanded. This case is also a continuation of a, here-resolved, substantial rights discussion that's worth keeping in mind.
    • In this precedential decision, CAFC affirms JMOL lack of enablement invalidity for the claim (offending language highlighted):
      "1. A method for treating gefitinib and/or erlotinib resistant non-small cell lung cancer in a patient in need thereof, comprising administering daily to the patient having gefitinib and/or erlotinib resistant non-small cell lung cancer a pharmaceutical composition comprising a unit dosage of an irreversible epidermal growth factor receptor (EGFR) inhibitor that covalently binds to cysteine 773 residue in the ligand-binding pocket of EGFR or cysteine 805 residue in the ligand-binding pocket of erb-B2." (emphasis added)
      Below, the DCT "emphasized that (1) the specification disclosed no workingexamples of unit dosages administered to patients, and (2) AstraZeneca presented unrebutted evidence that some disclosed dosage levels would be toxic, including doses required to achieve a therapeutic effect in patients."

      After agreeing on the claim construction, CAFC turns to enablement:
      "Wyeth argues that the district court erred in granting JMOL because, viewing the evidence in the light most favorable to Wyeth, a reasonable jury could have concluded that AstraZeneca failed to prove by clear and convincing evidence that the asserted claims require undue experimentation to determine a non-toxic or non-fatal unit dosage for daily administration to a patient. "
      CAFC disagrees. Indeed, the specification says "[t]he skilled artisan is aware of the effective dose for each patient." Ahem.
      "[T]he specification leaves the determination of the claimed “unit dosage” entirely to the knowledge of the skilled artisan . . .While the knowledge of one of ordinary skill may play an important role in enablement, it may not provide the only means to enable these specific claim limitations . . . That is what a specification of a patent must provide." (emphasis added)
      In sum:
      "We recognize that it is accepted practice in patent law for one to be able to claim a method of treatment disclosing a range of doses to be administered, without showing actual clinical data, and leaving it to the FDA to ensure that approved products are safe and effective . . . The problem with these patents is that, perhaps because of close prior art, their claims are limited to dosage forms to be administered to patients, yet they disclosed only a broad range of doses some of which were shown to be toxic, and they disclosed no actual dosages for any compound within the scope of the claims, thereby leaving it to a practitioner of the claims to perform undue experimentation." (emphasis added)
      Thus, as the only disclosed ranges "are not compatible for use in patients because they far exceed the maximum tolerated dose in humans" CAFC affirms.
    • CAFC affirms 101 ineligiblity on claims overbroadly focusing upon a "deep learning device" which "is a machine learning device that, through training, can analyze images and recognize patterns within the images." E.g., Claim 1 recites:
      "1. A method for assessing the shape of an orthodontic aligner, said method comprising the following steps: a) more than 1 week after the start of the treatment with the aligner, acquisition of at least one image at least partially representing the aligner in a service position in which it is worn by a patient, called “analysis image”, the analysis image being a photograph, or an image extracted from a film; b) analysis of the analysis image by means of a deep learning device, trained by means of a learning base, so as to determine a value for at least one tooth attribute of an “analysis tooth zone” representing, at least partially, a tooth on said analysis image, the tooth attribute relating to a separation between the tooth represented by the analysis tooth zone, and the aligner represented on the analysis image, in the step a), a cellphone is used to acquire the analysis image." (emphasis added)
      The DCT found that "independent claim 1 was directed to the abstract idea of acquiring and analyzing an image, then presenting the image in a message to guide the user to take a new image." Here, CAFC is similarly unimpressed by the "learning base" limitation:
      "Furthermore, while claim 14 of the ’248 patent and claim 7 of the ’409 patent require that the “deep learning device” be trained in a specific manner ––i.e., on a “learning base” comprising more than a thousand images of dental arches, see ’248 pat., col. 34 ll. 21–33; ’409 pat., col. 33 ll. 12–17––that does not mean they provide a specific technological solution that would render the claims patent-eligible. That a “deep learning device” be trained on a specific subset of data is “incident to the very nature of machine learning,” and thus is not a “technological improvement” rendering the claims eligible under § 101."
      Similarly, CAFC is unwilling to read in technical character:
      "[N]othing in claim 14 requires a specific quantitative assessment beyond the ability of an orthodontist . . . At most, the claimed methods may perform such determination of the amplitude of separation with greater efficiency or speed due to the nature of the generic “deep learning device.” But that does not render the claims patent-eligible . . . The showdown claims fare no better at step two, as there is no “inventive concept” sufficient to transform the ineligible abstract idea into patent-eligible subject matter. As stated previously, the “deep learning device” from each claim is conventional; the patents themselves explain that the device can be chosen from a list of well-known and available neural networks . . . Dental Monitoring next argues that using “deep learning devices” to guide orthodontic treatment was not “conventional” at the time the patent issued . . . But that misses the mark because “the relevant inquiry is not whether the claimed invention as a whole is unconventional or non-routine” . . . Rather, we look for an “inventive concept” that “transforms the claims into something ‘significantly more’” than the abstract idea . . . To the extent that Dental Monitoring considers the “deep learning device” to be “something significantly more” so as to render the claims patent-eligible, that argument is unavailing given that the patents themselves confirm that the “deep learning device” is generic."
      Ergo, affirmed.
    • In an interesting case, similar to Aqua Marine, commenting on timing, plaintiff apparently expected CAFC to hear an appeal on the DCT's 101 invalidity determination, despite licensing the patent to defendant in the interim.
      "Linfo and Trustpilot’s Agreement triggers a jurisdictional inquiry for this court because, if the Agreement ended the controversy between the parties, we must dismiss this case as moot . . . Section 2.1 of the Agreement grants Trustpilot a “worldwide and irrevocable license” to “make . . . use, offer for sale, [and] sell” products or services covered by the ’428 patent “[s]ubject to [Trustpilot’s] payment of the Settlement Fee” . . . The Agreement also notes that if the Southern District of New York lawsuit “resumes in any manner, or the Federal Circuit . . . remands [this] case to the District Court, [Linfo] . . . shall file a Stipulated Dismissal with Prejudice . . . Altogether, the Agreement demonstrates that Trustpilot no longer has a stake in the outcome of this litigation"
      While it's true that "in some circumstances the opposing party’s lack of interest will not bar adjudication on the merits, the outcome is different when the appellant is responsible for the opposing party’s lack of continued interest, for example, as here by a settlement."

      Ergo, dismissed.
More . . .
ABOUT
James Skelley is a solo practitioner based in Mountain View, California since 2015, focusing primarily upon technology transactions and intellectual property procurement. James' practice also serves as an "incubator" for new legal service technologies / methodologies and a "living example" of their application. To this end, James regularly partners with larger law firms and with his clients so as to improve the practice of intellectual property law.

LEGAL PRACTICE AREAS
  • Utility / Design / PCT Patent Prosecution
  • Open Source Diligence
  • Technology Transactions (typically as a team)
  • Litigation / Inter Partes Review Support (typically as a team)
  • James tends NOT to handle low-volume trademark work (though referrals are available)
LICENSING
  • USPTO - #59458 - 10/16/2006
  • California - #257829 - 12/01/2008
  • District Columbia - #1014986 - 08/05/2013
CONTACT
  • James is available by email, 8x8 hangout, and in-person meetups in the Valley.
  • Email is typically the best way to reach James.
TECHNICAL FIELDS
  • Machine Learning / Robotics
  • Cryptograpy / Cryptocurrency / Smart Contracts
  • Medical Device
  • Computational Biology (primarily modeling and proteomics)
  • Signal Processing (primarily wireless and compression)
  • Quantum Physics (primarily semiconductor) / Electromagnetics (antennae, waveguides, etc.)
  • Manufacturing / 3D Printing
  • James tends NOT to handle pure chemistry applications (though referrals are available), however James HAS handled matters involving computational proteomics, cellular modeling, and diagnostic lab protocols
SOFTWARE
LAWMUX BITES
LawMux Bites are (very) short, one-page summaries of various legal concepts, cases, and technologies. As informal summaries, you certainly shouldn't rely upon them as legal advice / for business use, but they can help orient you if you're new to the subject matter.

LAWMUX BITES
PAPERS / ARTICLES